Will Bank Indonesia Hike Rates With Weak IDR?

Bank Indonesia is poised for a potential 25 bps rate hike to combat the rupiah's fall to a record low of 17,705 per dollar. Global risks including the Hormuz Strait closure and rising yields are pressuring Asian FX, particularly the IDR and KRW.

Key Takeaways

• 1.Bank Indonesia is facing a pivotal rate decision on May 20, with a slim majority expecting a 25 bps hike to 5.00% to defend the rupiah.
• 2.The Indonesian Rupiah (IDR) hit a record low of 17,705 per dollar due to higher global yields and the Strait of Hormuz conflict.
• 3.Geopolitical tensions regarding the Iran conflict and Hormuz closure are keeping oil prices elevated and driving a risk-off mood in EM currencies.

Table of Contents

• Market Highlights
• Ahead Today
• INDICATIVE RATES 19-May-2026
• Disclaimer
• CERTIFICATION
• DISCLAIMERS
• Legal entities and branches
• General disclosures
• Country and region specific disclosures

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